High Cost Fund Preamble and State Plan
Texas Education Agency
Division of IDEA Coordination
June 2010
Preamble
The purpose of the High Cost Fund is to assist local education
agencies (LEAs*) in addressing the needs of "high need children with disabilities"
by lessening the financial impact associated with providing direct special education
and related services to high need children with disabilities.
*For these purposes, throughout the Preamble and State Plan,
the term “local education agency (LEA)” includes a consortium of
LEAs or a charter school that is an LEA.
State Plan
During the 81st Texas Legislative Session (2009), the Legislature
appropriated funds for the Local Educational Agency Risk Pool, (Rider 47). Out
of the funds appropriated for Students with Disabilities, (Strategy A.2.3 Senate
Bill 1, General Appropriations Act, Article III), the Commissioner shall implement
the provisions of the Individuals with Disabilities Education Act (IDEA) of
2004, pertaining to a local educational agency risk pool. The Commissioner shall
allocate allowable amounts under the Act for the 2010 fiscal year and the 2011
fiscal year to establish the high cost fund to assist districts with high need
students with disabilities. It is the intent of the Legislature that the use
of these funds by school districts and charter schools does not violate the
least restrictive environment requirements of IDEA 2004, relating to placement
and state funding systems that distribute funds based on type of setting.
The State will reserve for fiscal years 2010 and 2011 ten percent
of the amount of funds the State reserves for other State-level activities under
34 CFR §300.704
(b)(1). These funds will not be used for costs associated with establishing,
supporting, and otherwise administering the High Cost Fund. These funds remain
under the control of the State until disbursed to an LEA to support a specific
child who qualifies under the State plan for the High Cost Fund. The impact
of the High Cost Fund on student services and placement may be monitored by
the TEA.
Definition of a High Need Child with a Disability
- A high need child with a disability financially impacts the
budget of the LEA due to the high costs associated with providing direct special
education and related services to the high need child with disabilities.
- The cost of a high need child with a disability is greater than four times
the average per pupil expenditure in the State (as defined in section 9101
of the ESEA).
Program Effective Dates
The High Cost Fund award period for the 2010-2011 school year
is October 1, 2010 through August 31, 2011.
Use of Funds
- The costs associated with educating a high need child with a disability
are only those costs associated with providing direct special education and
related services to the child that are identified in that child’s IEP,
including the cost of room and board for a residential placement determined
necessary, consistent with the least restrictive environment requirements
of IDEA 2004 (34
CFR 300.114), to implement a child’s IEP.
- These costs must be incurred during the High Cost Fund program effective
dates.
- The High Cost Fund must not be used to limit or condition the right of a
child with a disability who is assisted under Part B of the Act to receive
a free appropriate public education (FAPE) in the least restrictive environment
(LRE) pursuant to section 612(a)(5) of the Act.
- The High Cost Fund must not be used to support legal fees, court costs,
or other costs associated with a cause of action brought on behalf of a child
with a disability to ensure FAPE for such child.
- The High Cost Fund must not be used to pay costs that otherwise would be
reimbursed as medical assistance for a child with a disability under the State
Medicaid program under Title XIX of the Social Security Act.
- LEAs, if eligible, already receive discretionary residential funds to assist
with the costs for students with disabilities who are served in residential
care and treatment facilities. Therefore, disbursements from the High Cost
Fund for the cost of residential care and treatment will be limited to a portion
of the LEAs’ 25% residential set aside amount being used for the specific
high need student.
LEA Eligibility Criteria
The LEA may request a High Cost Fund award provided that the
LEA:
- Has not violated the least restrictive environment requirements of IDEA
of 2004;
- Has not lapsed IDEA-B Formula or Formula Deaf funds from the previous school
year;
- Does not roll forward 50% or more of its IDEA-B formula funds from the previous
year; and
- Has complied with all systems of accountability and reporting to the Texas
Education Agency, including but not limited to: accountability ratings, performance-based
monitoring, compliance, fiscal reports, and dispute resolution processes.
Funding Mechanism for Distribution of the High Cost Fund
- The LEA must complete a High Cost Fund Eligibility Application which consists
of a student-specific application for each specific high need child with a
disability who meets the definition of a high need child in the State plan.
- The completed HCF Eligibility Application must be submitted to the TEA Division
of IDEA Coordination by the submittal method and deadline specified by the
TEA.
- The HCF Eligibility Application will be reviewed to determine if eligibility
criteria have been met.
- The High Cost Fund award may not be fully funded. The LEA award amounts
will be calculated based on the total amount being requested statewide and
the amount of funds available.
- After receiving approval from the TEA Chief Deputy Commissioner, an award
letter will be generated and mailed to the Superintendent of the LEA. A copy
will also be sent to the LEA’s Director of Special Education and to
the Special Education Contact at the Education Service Center (ESC).
- If an application does not meet the eligibility criteria, a denial letter
will be mailed to the Superintendent of the LEA. A copy will also be sent
to the LEA’s Director of Special Education and to the Special Education
Contact at the ESC.
- Once the award letter is received, the LEA MUST budget for the High Cost
funds via TEA’s eGrants Standard Application System (SAS) using the
IDEA-B High Cost Grant application (SPED AH11). Failure to budget
these funds will result in loss of funds.
- A Notice of Grant Award (NOGA) will be issued after completion of TEA's
program and fiscal reviews of the eGrants IDEA-B High Cost Grant application.
- LEAs must draw down reimbursements on the HCF NOGA using the Expenditure
Reporting (ER) system. The ER system is accessed through the TEA SE system
at: https://seguin.tea.state.tx.us/apps/logon.asp.
- As with other grants and programs, LEAs must create and maintain adequate
and sufficient documentation demonstrating that expenditures pertained to
the High Cost Fund. This may be accomplished by maintaining routine records
(e.g., purchase orders, invoices, payroll records, etc.) and by utilizing
a locally defined subobject code or other local option code to track expenditures.
Alternatively, the LEA may indicate on all documentation (purchase orders,
contracts, etc) that the transaction will be reimbursed out of the High Cost
Funds. The LEA must also maintain sufficient documentation to demonstrate
that expenditures pertained to the specific high need child for whom the HCF
award was granted.
Deadlines
The deadline to submit the HCF Eligibility Application (to request
an award) is 5 pm October 1, 2010.
The deadline to submit the IDEA-B High Cost Grant Application
(to budget the funds) is 5pm July 15, 2011.
Both applications can be accessed at: https://seguin.tea.state.tx.us/apps/logon.asp.
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